Central Sales Tax Act, 1956 – s.22(1B) – Finance Act, 2010 – Sales effected through RSO, Vijayawada w.r.t vehicles/buses sold to APSRTC were in the nature of inter-state sale – Appellant was thus liable to pay central sales tax to the State of Jharkhand however, treating the sale as stock transfer, it paid the tax on the aforesaid transaction to the State of Andhra Pradesh which is not leviable by it – Central Sales Tax Appellate Authority though found the transaction to be in the nature of inter-state sale but, passed no further consequential order directing to adjust the amount of tax paid on aforesaid transaction against the tax to be paid to the State of Jharkhand – On appeal, held: By the 2010 Act, s.22(1B) was inserted to the 1956 Act – Prior to the said insertion of s.22(1B), there was no provision by which the Appellate Authority could have issued directions for refund of the tax collected by the State which has been held by it to be not due to that State, or direct that State to transfer the refundable amount to the State to which central sales tax is due on the same transaction – In the present case, the transaction is for the period prior to insertion of s.22(1B) to the 1956 Act and the impugned order has been passed by the Appellate Authority pre-insertion of s.22(1B) to the 1956 Act – Thus, it cannot be said that it committed any error in not issuing any direction which now is permissible u/s.22(1B) of the 1956 Act – However, the State of Andhra Pradesh cannot retain the amount of central sales tax paid by the appellant on the transaction – Therefore, in line with s.22(1B), the State of Andhra Pradesh to transfer to the State of Jharkhand the amount of central sales tax deposited by the appellant w.r.t the transaction in question, subject to the appellant submitting the proof of the amount of central sales tax already paid thereon – State of Jharkhand to adjust the same towards the central sales tax liability of the appellant on such transaction.
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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